Report on the Activities of the
Texas Comptroller of Public Accounts
INTERNAL AUDIT DIVISION | FISCAL 2021
Glenn Hegar Texas Comptroller of Public Accounts
Submitted to
Governor’s Oce, Budget and Policy Division
Texas Comptroller of Public Accounts
Legislative Budget Board
State Auditor’s Oce
Oct. 29, 2021
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | I
Table of Contents
I. Compliance with Texas Government Code Section 2102.015:
Posting the Internal Audit Plan, Internal Audit Annual Report
and Other Audit Information on the Website
..............................................................1
II. Internal Audit Plan for Fiscal 2021 .........................................................................2
III. Consulting Services and Non-audit Services Completed ...................................................4
IV. External Quality Assurance Review (Peer Review) ..........................................................6
V. Internal Audit Plan for Fiscal 2022 .........................................................................7
VI. External Audit Services Procured in Fiscal 2021 ...........................................................12
VII. Reporting Suspected Fraud and Abuse ...................................................................14
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 1
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
I. Compliance with Texas Government Code Section 2102.015:
Posting the Internal Audit Plan, Internal Audit Annual Report
and Other Audit Information on the Website
The Texas Comptroller of Public Accounts (Comptroller’s oce) has developed a process to follow in order to ensure com-
pliance with the provisions of Texas Government Code Section 2102.015. Specically, within 30 days of approval by the
Comptroller, the approved Internal Audit Annual Audit Plan, as provided by Texas Government Code Section 2102.008, was
posted on the Comptroller’s oce internet website (https://comptroller.texas.gov/transparency/reports/cpa-operations/).
In addition, the Internal Audit Annual Report, as required by Texas Government Code Section 2102.009, will be posted on
the Comptroller’s oce internet website.
In accordance with Texas Government Code Title 5 Open Government Ethics Chapter 552 Public Information Subchapter C
Information Excepted from Required Disclosure, the Internal Audit Division will not release any condential or sensitive
information protected by this exception. Any information not protected by this or another applicable exception that is determined
to be condential in nature will be specically designated as such in accordance with State Auditor’s Oce (SAO) guidelines. No
information contained in the agency’s Internal Audit Annual Audit Plan or Internal Audit Annual Report is excepted from public
disclosure under Chapter 552
.
Texas Government Code Section 2102.015 also requires state agencies to update the posting required under this section
to include:
•
A detailed summary of the weaknesses, deciencies, wrongdoings or other concerns, if any, raised by the audit plan
or annual report.
•
A summary of the action taken by the agency to address the concerns, if any, that are raised by the audit plan or
annual report.
To ensure compliance, reports on the implementation status of audit recommendations are posted on the Comptroller’s
oce internet website (https://comptroller.texas.gov/transparency/reports/cpa-operations/), unless excepted from public
disclosure.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 2
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
II. Internal Audit Plan for Fiscal 2021
Fiscal 2021 Audits Status
Audit of Managing Electronic File Transfers Completed
Report Title: An Internal Audit Report on the Audit of Managing
Electronic File Transfers
Report No.: 96-1841
Report Date: March 2021
Audit of Administration of the Statewide Historically
Underutilized Business (HUB) Program
Completed
Report Title: An Internal Audit Report on the Audit of Administration
of the Statewide HUB Program
Report No.: 96-1846
Report Date: June 2021
Audit of Bankruptcy Billings and Collections Completed
Report Title: An Internal Audit Report on the Audit of Bankruptcy
Billings and Collections
Report No.: 96-1851
Report Date: August 2021
Audit of Cash and Securities Management Completed
Report Title: An Internal Audit Report on the Audit of Cash and
Securities Management
Report No.: 96-1852
Report Date: August 2021
Audit of Crude Oil and Natural Gas (CONG), Tobacco,
Amusement and Agriculture (AG)
In progress. Fieldwork phase.
Audit of Texas Bullion Depository In progress. Reporting phase.
Audit of Business Operations Information Technology* In progress. Reporting phase.
*This scal year, the Internal Audit Division absorbed the Texas Treasury Safekeeping Trust Company (TTSTC) audit function.
Audits of the TTSTC are incorporated into the Internal Audit Division’s Fiscal 2022 Internal Audit Annual Audit Plan. The Fiscal
2021 Internal Audit Annual Report includes audits completed at the TTSTC.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 3
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Fiscal 2020 “In Progress” Audits Status
Audit of Agency Governance Processes Completed
Report Title: An Internal Audit Report on the Audit of Agency
Governance Processes
Report No.: 96-1847
Report Date: July 2021
Audit of Agency Procurement Process Completed
Report Title: An Internal Audit Report on the Audit of the Agency
Procurement Process
Report No.: 96-1844
Report Date: June 2021
Audit of Alternative Investments* Completed
Report Title: Alternative Investments Audit Report as of
December 31, 2019
Report Date: Dec. 8, 2020
Audit of Accounting and Trust Operations* Completed
Report Title: Accounting and Trust Operations Audit Report as of
April 30, 2020
Report Date: Jan. 28, 2021
Audit of Administrative Operations* Completed
Report Title: Administrative Operations Internal Audit Report as of
July 31, 2020
Report Date: Jan. 29, 2021
Audit of BidTex* Completed
Report Title: BidTex Audit Report as of May 31, 2020
Report Date: Jan. 29, 2021
Audit of Custody Settlement* Completed
Report Title: Custody Settlement Internal Audit Report as of
March 31, 2020
Report Date: Jan. 29, 2021
*This scal year, the Internal Audit Division absorbed the TTSTC audit function. Audits of the TTSTC are incorporated into the
Internal Audit Division’s Fiscal 2022 Internal Audit Annual Audit Plan. The Fiscal 2021 Internal Audit Annual Report includes
audits completed at the TTSTC.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 4
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
III. Consulting Services and Non-audit Services Completed
Report
Number
Report
Date
Report
Name
High-Level Objective(s)
Observations/Results and
Recommendations
N/A N/A N/A Web Application Modern-
ization and Optimization
Project (WAMO)
This ongoing consulting engagement provides
high-level monitoring of the WAMO Project and
review of contract deliverables.
N/A N/A N/A Information Protection Poli-
cies and Standards (IPPS)
Consulted with Information Security on
enforcement of the IPPS. Attended IPPS Review
Committee meetings.
N/A N/A N/A Special Investigations Investigations were conducted and appropriate
actions were taken to respond to hotline com-
plaints received from the SAO.
N/A N/A N/A ServiceNow Governance,
Risk and Control (GRC) Pilot
Project
Participated in a workgroup for implementing
an agency-wide governance, risk management
and compliance tool. The objective of this project
was to review the GRC module of ServiceNow to
determine if it is a suitable application to use in
the agency’s enterprise risk management and risk
assessment process.
N/A N/A N/A High-dollar Refund Approval
Memo Project (Big Money
Memo Special Project)
Assessed the proposed changes to automate
the processing of the “Big Money Memo.” The
overall objective of this consulting service was
to evaluate the eciency and eectiveness of
the internal controls over the big money memo
process and to determine whether the paper
form of the memo could be eliminated without
diminishing internal controls.
N/A N/A N/A Information Technology
Steering Committee (ITSC)
This ongoing consulting engagement provides
for Internal Audit to serve in an advisory capac-
ity to the ITSC that guides and directs eorts to
align Information Technology (IT) investments
with the needs of the divisions.
N/A N/A N/A Review of Property Tax Data
Analysis
Internal Audit performed a limited process
review of the procedures supporting the
Property Tax Assistance Division’s (PTAD), Data
Analysis’ key process in accordance with Texas
Government Code 403.302(h).
Internal Audit recommended that PTAD
enhance its review process to ensure that
management identifies a secondary reviewer
on audits.
N/A N/A N/A Informal Review of Enforce-
ment Division Taxpayer
Receipt Process
Worked with the Enforcement Division to assess
the impact of providing taxpayer receipts with-
out their signature included.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 5
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Report
Number
Report
Date
Report
Name
High-Level Objective(s)
Observations/Results and
Recommendations
N/A N/A N/A Unclaimed Property ITSC
Project Proposal
Worked with Unclaimed Property to develop
an ITSC project proposal that will automate the
return warrant process by harnessing the power
of our Enterprise Content Management System.
N/A N/A N/A External Auditor Liaison Performed liaison activities with external
auditors (i.e. SAO and Clifton Larson Allen LLP),
conducting audits at the Comptroller’s oce.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 6
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
I V. External Quality Assurance Review (Peer Review)
Overall Opinion
It is our opinion that the Texas Comptroller of Public Accounts Internal Audit Division receives a rating of “Pass/Generally
Conforms” and is in compliance with the Institute of Internal Auditors (IIA) International Standards for the Professional Prac-
tice of Internal Auditing and Code of Ethics, the United States Government Accountability Oce (GAO) Government Auditing
Standards, and the Texas Internal Auditing Act (Texas Government Code Chapter 2102). This opinion, which is the highest
of the three possible ratings, means that policies, procedures and practices are in place to implement the standards and
requirements necessary for ensuring the independence, objectivity and prociency of the Internal Audit Division.
The Internal Audit Division is independent, objective and able to render impartial and unbiased judgments. Sta members
are qualied, procient and knowledgeable in the areas they audit. Individual audit projects are planned using risk assess-
ment techniques; audit conclusions are supported by working papers and ndings and recommendations are communicat-
ed clearly and concisely. The Internal Audit Division is well managed, has eective relationships with the Comptroller and
the Deputy Comptroller and is well respected and supported by management. Surveys and interviews conducted during the
quality assurance review indicate the Internal Audit Division is integrated into the agency and is a useful part of its opera-
tions. In addition, audit processes and report recommendations add value and improve the agency.
The Internal Audit Division has reviewed the peer review team’s results and has accepted them to be an accurate representa-
tion of the Internal Audit Division’s operations.
Acknowledgments
We appreciate the courtesy and cooperation extended to us by the Internal Audit Division director, Internal Audit Division sta,
Deputy Comptroller, Comptroller and division and executive management who participated in interviews. We would also like to
thank each person who completed a survey for the quality assurance review. The feedback from the surveys and the interviews
provided valuable information regarding the operations of the Internal Audit Division and its relationship with management.
Signature on File
7/9/2020
Katie Fitch, CPA Date
Senior Internal Auditor
Depar
tment of Public Safety
SAIAF Peer Review Team Member
Signature on File
7/9/2020
Steven Clark Date
Internal Auditor
Department of Public Safety
SAIAF Peer Review Team Member
Signature on File
7/9/2020
John Rivers, MBA, CIA, CISA, CGAP, CRMA Date
Audit Coordinator
Department of Family and Protective Services
SAIAF Peer Review Team Leader
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 7
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
V. Internal Audit Plan for Fiscal 2022
Fiscal 2022 Audits
Project Title Division Area
Project
Hours
Audit of Agency Batch Processing
Information Technology Infrastructure - Distributed Services -
Batch Processing
900
Audit of Unclaimed Property Claims
Processing
Information Technology Contract Claims 1,250
Audit of Texas SmartBuy Administration
and Support
Statewide Procurement Data Management, Analytics and
Technology
1,080
Audit of Enforcement Collections
Processes
Enforcement Field Operations Headquarters Support
- Collection Training Technical Support
Headquarters Support - Systems
Administration
1,950
Audit of Incoming Mail, Edit and Image
Processing
Revenue Processing Incoming Mail, Edit and Image
Processing - Image Processing
Incoming Mail, Edit and Image
Processing - Incoming Mail
1,600
Audit of Taxpayer Audits and Refund
Verications
Audit Field Oces 1,550
Audit of External Investments*
TTSTC External
Investments
External Investments 760
Audit of TTSTC Billings Process*
TTSTC Finance Financial Accounting and Reporting 410
Total Fiscal 2022 Audit Hours 9,580
*This scal year, the Internal Audit Division absorbed the TTSTC audit function. Audits of the TTSTC are incorporated into the
Internal Audit Division’s Fiscal 2022 Internal Audit Annual Audit Plan. The Fiscal 2021 Internal Audit Annual Report includes
audits completed at the TTSTC.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 8
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Fiscal 2021 Audits in Progress
Project Title Division Area
Project
Hours
Audit of CONG, Tobacco,
Amusement
and AG
Account Maintenance CONG, Tobacco, Amusement and AG:
- Tobacco, Amusement and AG/Timber
- CONG Exemptions and Credits
- CONG Refunds and Collections
- Tobacco, Amusement and AG/Timber
985
Audit of Texas Bullion Depository
Texas Bullion Depository Texas Bullion Depository 730
Audit of Business Operations
Information Technology*
TTSTC Trust Company Business Operations
Information Technology
400
Audit of Cash and Securities
Management
Treasury Operations Cash and Securities Management -
Cash Management Program
Cash and Securities Management - Funds Transfer
60
Audit of Bankruptcy Billings and
Collections
Revenue Accounting Miscellaneous Taxes, Fund Reconciliations,
Bankruptcy and Liens - Bankruptcy and Liens
20
Total Fiscal 2021 Audits-
in-Progress Hours
2,195
*This scal year, the Internal Audit Division absorbed the TTSTC audit function. Audits of the TTSTC are incorpo-
rated into the Internal Audit Division’s Fiscal 2022 Internal Audit Annual Audit Plan. The Fiscal 2021 Internal Audit
Annual Report includes audits completed at the TTSTC.
The scal 2022 Audit of Texas SmartBuy Administration and Support, Audit of External Investments and Audit of
the TTSTC Billings Process address contract management. Contract management is also addressed in the Audit of
Texas Bullion Depository, an in-progress audit for scal 2021.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 9
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Special Projects/Management Requests
Project Title
Project
Hours
Follow Ups 320
Client Assist (Internal/External) 10
Fiscal 2021 Internal Audit Annual Report 10
Fiscal 2023 Risk Assessment 590
Fiscal 2022 Audit Plan Monitoring 120
TeamMate Maintenance 80
Internal Audit SharePoint Maintenance 40
TeamMate Template Revision 50
Quality Assurance Reporting 20
IT Steering Committee 10
Internal Audit Handbook Review 50
IT Audit Template 100
Special Investigations 0
External Peer Reviews 0
ServiceNow GRC Project 0
Process Reviews 990
Internal Audit Awareness 50
TTSTC Board/Committee Meetings 60
Special Projects/Management Requests Carry Forward
Fiscal 2022 Risk Assessment 50
Other Requests/Unallocated Hours 295
Total Special Projects/Management Requests 2,845
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 10
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Summary of Hours
Summary Total Hours
Total Fiscal 2022 Audits 9,580
Total Fiscal 2021 Audits in Progress 2,195
Total Special Projects/Management Requests 2,845
Direct Audit Hours
14,620
Indirect Hours
6,260
Total Hours 20,880
The Internal Audit Division (Division) developed the Internal Audit Plan for scal 2022 in accordance with the Texas Internal
Auditing Act (Act). The Act requires that the Division conduct an annual risk assessment and develop the Internal Audit Plan
based on the results of the annual risk assessment. The risk assessment is based upon 710 key processes reported through
the Enterprise Risk Management Program. The Division analyzed and assessed the risks to those key processes by using the
self-assessment module of the Division’s TeamMate audit software, supplemental risk questionnaires and interviews with
executive management and division directors and used the results to conduct our annual risk assessment for scal 2022. We
considered risks related to contract management [Texas Government Code Section 2102.005(b)] and information technology
[Title 1 Texas Administrative Code Chapter 202 (Information Security Standards)] in our risk-assessment process by obtaining
probability, impact and monitoring risk-level ratings for applicable agency key processes through the TeamRisk self-assess-
ments. We reviewed these risk-level ratings further and adjusted, as needed, based on auditor judgment in the TeamRisk
auditor assessment worksheet.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 11
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Risk Factors and Weights
Risk Factor Risk Weight
Control Environment 15.00%
Risk and Monitoring 20.00%
Dollar Value of Transactions 15.00%
Reliance on Third Parties 10.00%
Organizational Changes 5.00%
Legislative Interest 5.00%
Condential Information 10.00%
Management Concern 10.00%
Information Systems 10.00%
The risk assessment identied 59 high-risk, 634 medium-risk and 17 low-risk key processes. To provide coverage for all high
risks, we propose the following:
•
Fourteen key processes will be covered in six audits.
•
Five key processes will be covered in ve process reviews.
•
Seven key processes will be covered as part of scal 2022 Internal Control Risk Assessment (ICRA) workshops.
•
Six key process will be covered in two scal 2021 carryover audits.
•
Twenty-seven key processes were covered in previously conducted audits.
In scal 2022, the Division hired an internal auditor for the TTSTC. This auditor is dedicated to performing audits of the TTSTC.
Two TTSTC audits are planned for this scal year. Additionally, ICRA workshops are planned for all TTSTC teams to gather key
processes and identify risk and controls. This information will be used to integrate identied TTSTC key processes into the
agency’s annual risk assessment process
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 12
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
VI. External Audit Services Procured in Fiscal 2021
Name of External Auditor Services Provided
Date of Service
(Report Date)
RSM US LLP Financial audit of the programs of the Texas
Prepaid Higher Education Tuition Board
Report dated Dec. 17,
2020 for scal 2020
Audit Services, U.S. LLC Audit Services for Unclaimed Property Fiscal 2021 to current
Discovery Audit Services Audit Services for Unclaimed Property Fiscal 2021 to current
EECS, LLC Audit Services for Unclaimed Property Fiscal 2021 to current
Innovative Advocate Group Audit Services for Unclaimed Property Fiscal 2021 to current
Kelmar Associates, LLC Audit Services for Unclaimed Property Fiscal 2021 to current
Kroll Government Solutions Audit Services for Unclaimed Property Fiscal 2021 to current
Treasury Services Group Audit Services for Unclaimed Property Fiscal 2021 to current
RSM US LLP Audit of FY20 Financial Statements of Texas
Treasury Safekeeping Trust Company (TTSTC)
Dec. 15, 2020
RSM US LLP Attestation of Compliance with TTSTC Incentive
Compensation Plan
Dec. 15, 2020
RSM US LLP Audit of FY20 Financial Statements of State
Water Implementation Fund for Texas (SWIFT)
Dec. 7, 2020
RSM US LLP Attestation of Compliance with Investment
Policy of SWIFT
Dec. 7, 2020
RSM US LLP Audit of FY20 Financial Statements of Texas Local
Government Investment Pool (TexPool)
Nov. 5, 2020
RSM US LLP Audit of FY20 Financial Statements of Texas Local
Government Investment Pool Prime (TexPool
Prime)
Nov. 5, 2020
RSM US LLP Audit of 2020 Financial Statements of Tobacco
Settlement Permanent Trust Fund
March 15, 2021
RSM US LLP Attestation of Compliance with Investment
Policy of Tobacco Settlement Permanent Trust
Fund
March 15, 2021
RSM US LLP Attestation of Compliance with Distribution
Policy of Tobacco Settlement Permanent Trust
Fund
March 15, 2021
KPMG LLP System and Organization Controls (SOC 1) Re-
port on the Texas Comptroller of Public Accounts’
Description of its Centralized Accounting Payroll/
Personnel System and the Suitability of the
Design and Operating Eectiveness of Controls
Oct. 15, 2021
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 13
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
Name of External Auditor Services Provided
Date of Service
(Report Date)
Abdessamad Ait Ali/State Sales Tax Consulting, LLC
Alejandro C. Gonzales, Jr.
Anna Tarver/Hive City Financial Consulting, LLC
Antonio V. Concepcion
Brenda Lynn Tschirhart
Cindy Alvarez
Cindy H. Coats, CPA
Cindy Reed, CPA/State Tax Consulting, LLC
Dale Ruzicka/State Tax Consulting, LLC
Dan A. Northern
Delores A. Nornberg
Dibrell P. Dobbs
Dixie Smith, CPA/State Tax Consulting, LLC
Fabian Avina
Flor H. Holmes
Frank Castro/Texas Tax Consulting Group LC
Homer Max Wiesen, CPA
Jody Sue Loudermilk
Jose (Joe) Granados/JPG-EJG, LLC
Judy Hannah
Julie R. Ortiz, CPA
Karina Guadalupe Goulet/KGVG Advisors, LLC dba
Texas Tax Specialist
Khristina Mitchell/Khrista Marque, LLC
L. C. Gordon, Jr./Taygor Associates, LLC
Lisa Loughney
Marina Roy Buenaventura, CPA
Michelle Duplechain
Michiell Stites
Paul Hernandez
Ramiro J. Garza
Raymond Franco/State and Local Tax Group LLC
Robert Hant Fabyan, CPA/RFabyan Consulting LLC
Sean J. Lomonaco
Stephanie (Clark) Jackson
Sylvia Villanueva Flaherty
Trevor Garrett/Garrett State Tax Service Inc.
Vernice Seriale, Jr.
Wayne A. Powe
Wayne Wharton/State and Local Tax Group LLC
Yunping Hu
Sales and Use Tax examination services Fiscal 2021
Sept. 1, 2020 through
Aug. 31, 2021
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 14
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
VII. Reporting Suspected Fraud and Abuse
The Comptroller’s oce has taken several measures to address the potential misuse or misappropriation of state resources.
The Comptroller’s oce has also taken action to implement the requirements to report suspected fraud, waste and abuse
involving state resources directly to the SAO.
Actions taken to implement the requirements of:
•
Fraud Reporting Sec. 7.09 page IX-37 the General Appropriations Act (86th Legislature) and Section 7.09, page IX-38
the General Appropriation Act (87th Legislature)
The Comptroller’s office internet website contains a Report Fraud link when the Contact link at the bottom of the page is
selected (https://comptroller.texas.gov/). This webpage explains how to report fraud involving state resources to the
SAO. The SAO’s phone number for reporting fraud, 800-TX-AUDIT (892-8348), and a link to the SAO’s Fraud website,
https://sao.fraud.texas.gov/, are included in the information provided on the Reporting Fraud page.
The Comptroller’s oce intranet website contains a State Auditor’s Fraud website link at the bottom of the page, which
directs users to the SAO’s Investigations and Audit Support page. This webpage provides information and instructions on
reporting fraud, waste or abuse to the SAO. The SAO’s hotline number for reporting fraud, 800-TX-AUDIT (892-8348); a link
to the SAO’s form for reporting fraud, waste or abuse and instructions on submitting reports of fraud, waste or abuse by
email, mail or facsimile are found on this webpage.
The Employee Handbook of the Comptroller’s oce, Chapter 15: Compliance and Risk Assessment – Policy Prohibiting Fraud,
Waste, Theft, and Abuse, includes information on how to report suspected fraud involving state funds to the SAO by calling
800-TX-AUDIT (892-8348) or by making a report online (https://sao.fraud.texas.gov/). The same Employee Handbook includes
a requirement that all employees complete fraud awareness training and complete an acknowledgment form each scal year.
The Comptroller’s oce Internal Audit Division website also contains links and contact information that include the SAO’s phone
number for reporting fraud, 800-TX-AUDIT (892-8348); the link to the SAO’s Fraud website (https://sao.fraud.texas.gov/); the link
to the SAO Fraud Reporting Form (https://sao.fraud.texas.gov/ReportFraud/); the link to the GAO’s FraudNET (http://www.gao.
gov/about/what-gao-does/fraudnet) and the GAO’s toll-free number, 800-424-5454, and fax number, 202-512-2841, as well as
the email address (fraudnet@gao.gov).
•
Texas Government Code Section 321.022. Coordination of Investigations
The Comptroller’s oce has established the “Policy Prohibiting Fraud, Waste, Theft and Abuse” and is committed to preventing
fraud, waste, theft and abuse by its employees and any consultant, vendor, contractor, outside agency or person in dealings
with the agency or the state of Texas.
Each employee is required to report any suspected fraud, theft, waste or abuse to the agency. An employee may make a report
to his or her supervisor, directly to the Ethics Ocer or through the internal Employee Hotline by calling (toll free) 833-227-
0772, emailing employee[email protected].gov and/or faxing 512-936-0696.
Employees can report suspected fraud, waste and abuse involving state funds to the SAO by calling 800-TX-AUDIT (892-8348)
or by making a report online at https://sao.fraud.texas.gov/.
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS | 15
INTERNAL AUDIT ANNUAL REPORT FOR FISCAL 2021
The Ethics Ocer receives allegations of suspected fraud, waste, theft and abuse. The Ethics Ocer may collect additional
information from the employee or other person making the report and will make a preliminary determination whether the
allegations should be investigated by the Criminal Investigations Division, Internal Audit, Human Resources, the Ethics Ocer,
some combination of these or another appropriate person or entity.
The Anti-Fraud Coordinator will report any nding of fraud to the SAO as required.
Report on the Activities of the Texas Comptroller of Public Accounts
Internal Audit Division | Fiscal 2021
Publication #96-1814
Oct. 29, 2021